Commercial General Liability

What is a CGL Policy?

This is a complete policy to provide seamless protection to the Insured, and covers Third Party Liabilities arising from various business exposures such as those arising from Premises, Products, completed operations, Advertising &Personal injury and provides supplemental payments, thus ensuring complete protection to the insured against Liability issues.

Who can take a CGL Policy?

Indian Companies that have global operations.

Foreign companies who have opted for the CGL policy in other jurisdictions and would prefer the same for their Indian operations.

Companies who are contractually bound to carry Occurrence based liability covers.

Export companies who would prefer Claims handling abilities in all major jurisdictions.

What is Covered:

Coverage A: Bodily Injury & Property Damage Liability

Under this section the company will indemnify the insured against those sums that he’ll become legally liable to pay as damages because of bodily injury or property damage to a third party. This amount will however be limited to the amount described as the Limits of Insurance in the Policy Schedule. The insurance company will have the right and the duty to defend the insured against any suit seeking those damages. The insurance will apply to bodily injury or property damage only when the bodily injury or property damage is caused by an occurrence that takes place in the coverage territory within the policy period.

In countries where the law of the laws of the territory don’t permit the insurance company to defend, the insurance co. will reimburse the insured for the defense costs, subject to insurance company’s prior authorization in writing.

Coverage B: Personal & Advertising Injury:

Under this section the company will indemnify the insured against those sums that he’ll become legally liable to pay as damages because of Personal & Advertising Injury to which the insurance applies. This amount will however be limited to the amount described as the Limits of Insurance in the Policy Schedule. The insurance company will have the right and the duty to defend the insured against any suit seeking those damages. The insurance applies to personal and advertising injury caused by an offense arising out of your business, but only if the offense was committed within the coverage territory within the policy period.

Exclusions applicable to Coverage B:

The insurance doesn’t apply to Personal & Advertising Injury:
1.Caused by or at the direction of the insured.
2.Arising out of oral or written publication of material if done at the direction of the insured with the knowledge of its falsity.
3.Arising out of oral or written publication of material whose first publication took place before the policy inception.
4.Arising out of criminal act committed by or at the direction of the insured.
5.For which the insured has assumed liability under a contract or agreement.
6.Arising out of breach of contract.
7.Arising out of failure of goods, products or service to conform with any statement of quality or performance made in the insured’s advertisement.
8.Arising out of wrong description of the price of goods, products or service stated in the insured’s advertisement.
9.Arising due to pollutants.
10.Arising due to war or related activities.

Coverage C: Medical Expenses:

The company will pay for the medical expenses as described below for bodily injury caused by an accident caused by an accident:
At the insured’s premises
On ways next to the premises owned by the insured
Because of insured’s operations

Provided the accident takes place within the coverage territory within the policy period,and the accident is reported to the insurance company within 30 days of the date of accident.
These payments will be made regardless of fault, the payments will not exceed the applicable limit of insurance. Reasonable expenses will be paid for:
1.First aid administered at the time of an accident.
2.Necessary medical, surgery, X-Ray, and dental services including prosthetic devices.
3.Necessary ambulance, hospital, professional nursing and funeral expenses.

Exclusions applicable to Coverage C:

Insurance company will not pay for bodily injury:
1.To the Insured.
2.To Any person hired or employed by the insured or a tenant of the insured.
3.To a person injured on that part of the premises that the insured owns or rents that the person normally occupies.
4.To a person whether or not employed by the insured, if the benefits for the bodily injury are payable under WC Policy or disability benefits law or a similar law.
5.To a person injured while taking part in athletics.
6.Included within the Products-completed operations hazard.
7.Excluded under Coverage-A
8.Due to war or condition incident to war.

Supplementary Payments: Coverage A & B

There are various supplementary payments over & above the costs mentioned above that are made to the insured by the Insurance Company.Salient Features of CGL Policy:

Duty to Defend Policy

Can be offered on both Claims Made & Occurrence based forms

Provides Comprehensive Coverage

Provides Worldwide Coverage

Advantage of Refund Clause

Vendor’s Interest can be added to the policy

Get in touch with us

At Ethika, we understand that Insurance Broking is about ensuring the best interest of our customers and establishing trust. Our team has diverse experience and strong expertise which enables us to understand your business needs and your risks well. Our experts are highly innovative and they deploy the latest technology tools to bring Speed, Effectiveness and Utmost Responsiveness to your doorstep.